Answer:
The answer is C) $197,263.70
Step-by-step explanation:
It's losing 6% PER year for the last 3 year.
You can do what I did and take $237,500 and times it 0.06. Which should give you 14,250, that is how much is lost in year one.
So subtract 14,250 from 237,500, you should have $223,250 now.
Repeat the first step with $223,250 now, you times it by 0.06 again and you should get 13,395, you subtract that from $223,250.
You have $209,855 now, once again times that by 0.06 and you get 12,591.30. Subtract 12,591.30 from 209,855 and you should end up with $197,263.70
It's a long, simple method and I'm sure there is another method of solving this question, but this is an easy way to get the answer.
